DR LEE BUCHANAN Venture Partner PALADIN CAPITAL GROUP

Paladin Capital Group 5 th World Cyber Security Technology Research Summit H. Lee Buchanan Ph.D.

Prevent Detect/ID RemediateForensics Functional Ecosystem

Encryption Firewalls Whitelist VPNs Containers Authentication Prevent Detect/ID RemediateForensics Intelligence-Based Health Monitoring Machine Learning Deep Packet Inspect Training Network Visibility Isolation Response Protocols Continuity Data Log Kill Chain Analysis Prevalent Technologies

Prevent Detect/ID Remediate Forensics Relative Investment

● Security is a Cost Center (Not a Profit Center) ● Market is Bifurcated − “ Haves” Looking for a Chaffered Rolls Royce − “Have-Nots” Looking for a Standard KIA ● Cyber-Security is Very Talent Intensive ● Rapid Evolution − Antivirus Anti-Malware − Intrusion Detection Intrusion Prevention (host and network) − Standalone subsectors Integrated Offerings Market Factors

Ideal Investment Wave A change taking place in an industry that will drive urgent spending. Team A team that can execute, particularly and “engine of innovation that will continue to keep a company competitive. Advantage Some unfair advantage – often, but not always, technology - that will inhibit competition. White Space A broad enough market opportunity to allow for adjacent expansion. Value Add Opportunity for Paladin to materially benefit the company more than other investors.

What Hasn't Worked (Yet) ● Intelligence-Based Firewalls Too many threats, They come too fast ● Containers (except for Government) Move is away from enterprise provisioning ● Two-factor Authentication Effective, but too disruptive of User Experience ● Machine Learning (or anything else) for Detection Training Patterns are Changing too Fast ● Detection is Easy, Identification is Hard

What’s Needed ● Process Automation (Eliminate the Standing Armies) ● Automated Prioritization ● 80% Effectiveness at 20% of the Price (Have-Nots) ● Integrated Service Models (Security-as-a-Service) ● “Everybody a Firefighter” Approach ● Anything to Address the Insider Threat ● Effective Ways to Protect Critical Infrastructure